Jobs are the number one issue facing Michigan's next Governor. With Michigan having the highest unemployment rate in the nation, the next Governor needs to bring jobs and job providers back to Michigan. Mike Cox's first step in January 2011 is to cut the Michigan Business Tax by 50% and then phase it out completely.

The simple truth is other states are taking our jobs through lower tax rates. According to the Tax Foundation, Michigan has the 3rd worst business tax structure in the United States, causing high unemployment and the lack of diversity in our economy. Earlier this year, Chief Executive Magazine surveyed more than 500 national business leaders and found that Michigan was judged as the 3rd worst place to do business. As one executive told the survey, Michigan is "an absolute regulatory and tax disaster."

As Governor, Mike Cox will move quickly to change this high-tax perception by enacting $2 billion in tax cuts. Mike Cox will cut the Michigan Business Tax -- the job-killing tax -- in half as one of his first acts. This one move takes us from the 3rd worst business tax structure in the country to 7th best1. This tax cut is one part of a home-grown stimulus that -- combined with eliminating the Granholm-Cherry income tax hikes of 2007 -- will free up $2 billion for Michigan businesses and citizens to invest and grow our Michigan economy. We must send a message to the rest of the country that we are open for business, or more importantly, open to those who bring jobs here!

A new tax structure will allow the rest of the country to see our great universities, skilled workforce, midwestern work ethic, and awe-inspiring natural beauty. Simply put, this bold tax cut allows Michigan to compete again and stop the flow of jobs and people out of state.

It's more than businesses that are overtaxed. Michigander's are overtaxed on personal income. As Governor, Mike Cox will eliminate the Granholm-Cherry income tax hike of 2007. Cutting the personal income tax will benefit workers and entrepreneurs alike. People know how to spend their money better than the government does, and that's why Mike Cox wants to put more money in your pocket. We need to send a message to the rest of the nation that Michigan is prepared to join the 21st century, prepared to lessen the burdens of over-taxation and over-regulation and prepared to get government off the backs of taxpayers.

Michigan government has a spending problem. We are spending too much and cutting too little of our budget. Cutting spending means creating a Michigan that is more affordable and inviting to people and businesses alike. It's high time the State of Michigan did what the families of Michigan do -- live within its means. In other words, it's time to make the tough decisions -- cut the programs we can't afford, cut the services that are outdated and duplicated and right-size Michigan's budget.

Google "Center For Michigan," "Detroit Renaissance," "Citizens Research Council" and "Mackinac Center" and you will find groups from all across the ideological spectrum that outline well over $2 billion in responsible cuts to Michigan's budget. It is not that we lack the ideas, rather, the Governor has lacked the political will to make the needed changes. We don't just suffer from a jobs deficit; we also suffer from a leadership deficit. That will change on January 1, 2011, when Mike Cox becomes Governor.

Mike Cox has the proven ability to do more with less. Although the Attorney General's office has almost 20% fewer employees than 10 years ago, the office is still getting the job done for the people -- despite handling almost 10% more cases than just 3 years ago. Mike Cox is committed to cutting spending and right-sizing Michigan government. We must have the leadership and courage to cut spending and right-size Michigan government. Mike Cox can make the tough decisions, and it starts with cutting state spending.
1Ultimately, Mike Cox would eliminate the Michigan Business Tax to give any individual or business who wants to create jobs here some relief from the burdens of state government. Jobs fix most problems. The biggest obstacle to eliminating -- as opposed to cutting in half -- the Michigan Business Tax is the tax currently provides approximately $720 million to the School Aid Fund. Because a strong education system is a foundation block for any strong state, Mike Cox would not completely eliminate the Michigan Business Tax until replacement funds were found -- from cuts in spending elsewhere -- for the school Aid Fund.

There is no more important official in the Cox administration than the Michigan Economic Development Corporation (MEDC) director. As Governor, Mike Cox's first priority is to bring jobs back to Michigan. Mike Cox wants everyone to know that the MEDC director is right down the hall from the Governor, and Mike Cox plans on interacting with the director on a daily basis to find out what jobs are coming to Michigan.

The MEDC director will have instant access to, and communication with, the Governor; after all, the director is the marketing arm of economic development and should always have the Governor's ear. Currently, the MEDC is located in a different building from the Governor's office. This physical distance illustrates the actual disconnect between the Governor and economic development.

Michigan needs to send a message that it is serious about job creation, and jobs are at the core of the Governor's responsibilities. Indiana Governor Mitch Daniels moved his economic director into the Governor's office as soon as he took office to reinforce the idea that Indiana's top priority is job creation. This proposal is part of an overall message to businesses in Michigan -- and outside Michigan -- that we want their jobs here.

Every region in Michigan needs jobs. Michigan has tremendous assets throughout the state and it's important that we customize the focus for each region to ensure we are bringing jobs to every corner of Michigan. The Michigan Economic Development Corporation (MEDC) must promote a regional focus in MEDC economic development efforts to ensure that every area has the tools it needs to bring jobs to the community.

The MEDC has frequently been criticized for always trying to hit a home run with its economic development focus: turning resources toward reeling in large, media-worthy projects and not using resources to develop smaller or mid-sized projects with high growth potential. Another criticism is that the MEDC is too focused on traditional manufacturing. Under Mike Cox, the MEDC will focus its entire mission and resources on job creation - period.

Smaller companies with growth potential or non-manufacturing companies must receive the same "welcome mat" that big manufacturers receive. Our message must be that all jobs are welcome.

Similar to Tennessee's economic development efforts, Mike Cox will reorganize the MEDC staff to address the needs and goals of Michigan's diverse regions -- whether it is tourism and forestry/natural resources for northern Michigan, or logistics, manufacturing and high-tech for southeast Michigan, or agriculture and biotechnology for southwest Michigan. As Governor, Mike Cox will ensure that the MEDC does not limit the development of different regions, but rather, allows regions to use their strengths and ensures the MEDC leaves no area off its radar.

Mike Cox will focus on promoting economic diversity without trying to pick winners and losers. This is especially true when attempting to promote the clean energy economy. Michigan should advance on all fronts, from renewable energy to clean coal to nuclear power. As Governor, Mike Cox will expand alternative and clean energy economic incentives.

Recently, the Centers for Energy Excellence were created as a part of the 21st Century Jobs Fund program to foster alternative energy technologies. Mike Cox will expand the scope of projects eligible for support under this program. These expanded projects will include:

Carbon Sequestration - Michigan's geology lends itself to storage of carbon below ground. Technological advancements are needed to filter, pump and seal carbon waste as Congress proceeds with efforts to reduce emissions.

Natural Gas - Michigan has an advantage in natural gas storage capacity that must be leveraged. Michigan has the most underground natural gas storage capacity in the nation. As energy costs rise and the search for alternative source energy broadens, our policies must utilize every advantage that Michigan has. Industrialists like T. Boone Pickens have recognized domestic sources of energy, such as natural gas, are important to free us from our dependence on foreign oil.

Nuclear Plant Components - As efforts to reduce carbon emissions grow, the development of nuclear baseload generation will become more attractive as a way to replace aging coal-powered facilities. Michigan needs to encourage the development of these cleaner power plants and pursue the manufacturing capacity to build these new plants.

Through tax incentives, Michigan will support "alternative energy" technologies and promote commercialization of clean coal, natural gas and nuclear energy. In other words, science and effectiveness, not trends, will drive the tax incentives.

In this difficult economy, states are vigorously competing to bring jobs home. Michigan needs to create a "deal closing" fund to lure job providers to Michigan instead of other states. With other states providing competitive packages to job providers, Michigan needs to create a state economic development fund with current appropriations to the Governor and economic development director with the authority and flexibility to provide competitive packages to potential job providers. The ability of the Governor and the economic development group to be able to offer job training, land acquisition, environmental cleanup, infrastructure enhancements and other incentives are critical to "closing the deal."

With the current state of the economy, competition for jobs and economic investment is greater than ever. The next Governor needs every resource available to respond quickly to competing offers. A deal-closing fund will give the Governor flexibility without having to run to the Legislature for approval -- a process that can lead to delays and kill job creation. One advantage that the Texas governor enjoys is the ability to adapt to changing circumstances. Texas' Governor and Economic Development group can respond effectively without needing new legislation for
every new project. Michigan has abundant advantages -- there is no reason we can't compete with other states!

Michigan needs to provide a true one-stop shop for small business start-up assistance. Right now, small businesses and entrepreneurs in Michigan have to go to a number of resources to get available information on starting a small business - community colleges, local chambers of commerce, small business development centers, trade associations, etc. Michigan needs to make it easy to take that first step and start a business!

Michigan needs a more organized approach to assisting entrepreneurs and small businesses "get off the ground". Knowing the right questions to ask and where to go to find help can be the difference for any budding entrepreneur. Michigan's economic development efforts need more focus and an individualized approach.

Michigan also needs to do a better job linking entrepreneurs and their ideas with suppliers, buyers, and capital to foster economic development. Providing budding job creators points of contact within the agency and serving as a nexus between entrepreneurs, existing companies, and trade associations will help jobs grow. "How to find venture capital? Are there available state or federal grants or loans? What are the licenses I need? What permits do I need? How and when do I pay my Michigan Business Tax? Or Workmen's Compensation contributions?" are all questions any new business woman or man will face as they try to create jobs in Michigan. Michigan needs to create a "Facebook for Job Creators" - a web portal where entrepreneurs (and those who want to do business with them) can get advice and ask questions - within the MEDC to make Michigan the easiest place in America to hire people and start a business.

A number of Michigan universities have implemented degree-track programs to teach individuals about entrepreneurialism (University of Michigan, Central Michigan University, Eastern Michigan University, etc). Mike Cox supports the development of entrepreneurial programs and will increase the number of entrepreneurial programs in Michigan.
As part of prioritizing state spending, and as part of his focus on higher education, Mike Cox supports funding the expansion of existing programs and encouraging the development of similar programs at other schools.